The department recently sent out non-filer notices to businesses that did not file their Montana Annual W-2 1099 Withholding Tax Reconciliation (Form MW-3), along with their Forms W-2 and 1099 with withholding, for Tax Year 2018. This information was due January 31.
Helpful hints for filing the Montana Form MW-3
- File Annually
- A complete Montana Form MW-3 must be filed with the department each year. The department does not accept the federal Form W-3.
- Provide Forms W-2 and Forms 1099 with Montana Withholding
- Each employer is also required to provide the department with a Form W-2 for each employee as prescribed by the IRS. Whenever Montana wages are paid, you must prepare a Form W-2 for each employee regardless of whether any tax was withheld. Forms 1099 with Montana state withholding must also be be submitted to the department with the Form MW-3.
- Double-check for Correct Information
- Complete all required fields.
- Include the correct Employer Identification Number (EIN).
Be sure to use the EIN that the IRS issued you or your clients (if you are a payroll service provider).
- Include the correct state account number.
For Montana, this is the 13-digit alphanumeric ID that the Department of Revenue issued you when you or your client registered.
- If you file your Forms W-2 electronically, don’t send duplicate paper copies.
- If filing by paper, make sure all Forms W-2 and 1099 copies are legible, and numbers are not truncated or masked.
- File the correct Forms W-2 and 1099 for the reporting year.
- File the Montana Form MW-3 with your Forms W-2 – not the federal Form W-3.
Closing your Montana Wage Withholding Account
If you are no longer in business or no longer paying employees, your Montana Wage Withholding account should be ceased. The account can be reopened if required for future withholding. To cease the account one of the following methods should be used.
- Send an email to MTDORWithholding@mt.gov.
- From your TAP account, send an electronic message.
- Send a written request to PO Box 5835, Helena, MT 59604.
- File Form MW-3 stating the date the payroll ceased.
Last December, the Department released Form MW-4, which includes a section for employees who qualify for one of four exemptions from wage withholding:
- Enrolled tribal members living on the reservation of their tribe, if their wages are earned on that reservation.
- North Dakota residents earning wages in Montana.
- Reservists and National Guard members, generally when they receive a Title 10 order.
- Spouses of military service members who are in Montana to be with their spouse, and who earn wages.
These exemptions must be renewed every year by employees.